Before the collapse of Lehman Brothers on Sept.15, 2008 and the thousands of layoffs that had blood running in the Street, Wall Street money evidently fueled the New York housing market, especially luxury properties.
At the time, it was said that 7 percent of the city’s payrolls were linked to financial services and produced 23 percent of the employment income.
The conventional wisdom has been that the tribulations of the stock market would profoundly affect not only home prices in Manhattan but also stifle their recovery.
True, in the fourth quarter of 2008 and into the first quarter of this year, the Big Apple’s housing market was moribund and Wall Street’s woes indubitably were a root cause.
Now, however, the market is showing signs of life. (more…)